Positive growth in exports encouraging sign, however Brexit may put pressure with volatility in currencies: Ralhan

Ludhiana/New Delhi, July 15, 2016: Responding to the Trade Data for the month of June, 2016 exhibiting a modest 1.27 per cent positive growth in exports after continuous decline for past 18 months, Mr S C Ralhan, President, FIEO said that positive figure has instilled optimism among the exporters though global scenario remains challenging. President FIEO said that positive exports by Engineering, Marine, Drugs and Pharma, Plantation commodities, Electronic goods, Carpets and Handicrafts sectors is very encouraging as these are high employment generating sectors as well. Decline in Gems and Jewellery and Apparel exports, though marginal is a cause of concern. However firming of the Gold prices and the new package given to the Textile and Apparel sector will lead to better results in short span of time.

Mr Ralhan said that the Brexit and consequent depreciation of British Pound has put Indian exporters in a difficult situation particularly the smaller ones who have not hedged their currencies. Moreover Brexit is expected to put pressure on Euro as well. Indian exports may face little challenge on account of volatility in currency and increasing competition from low cost East European Economies.

There is need to identify products at micro level which needs to be promoted through aggressive strategy to take exports growth into double digit in next few months so as to reach USD 300 billion in 2016-17.